Gold Technical Analysis: Bull flag hanging above $1,190.00 a troy ounce still looking at 1,226.00 target

  • Gold bear trend has been losing some bearish steam in the last two weeks as the market found a bottom at $1,172.82 a troy ounce.
  • Bulls are attempting to create a bull flag above 1,182.90 August 24 low. The bull confirmation would come on a break above 1,204.10 (August 3 swing low) along with the 50, 100 and 200-period simple moving averages. The bull targets are seen at 1,220.90 (July 18 low) and 1,225.90 (July 17 low)
  • Alternatively, a bear breakout below 1,182.90 (August 24 low) would invalidate the bullish scenario and open the gates to a potential retest of the 2018 low.

Gold 4-hour chart

Spot rate:                   1,195.40
Relative change:        -0.02%
High:                          1,198.70
Low:                           1,191.14

Trend:                         Bearish
Short-term trend:        Bullish above 1,182.90

Resistance 1:            1,204.10, August 3 swing low (key level)
Resistance 2:            1,211.17 July 19 low
Resistance 3:            1,213.70 July 31 low
Resistance 4:            1,217.89-1,220.90 zone, August 6 high and July 18 low
Resistance 5:            1,225.90 July 17 low

Support 1:            1,194.30 March 10, 2017 low
Support 2:            1,189.49 September 4 low
Support 3:            1,172.82 current 2018 low
Support 4:            1,145.20 March, 1 2017 low

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